Technical Analysis Bakkafrost (BAKKA.OL)

Recommendation medium term

Bakkafrost has broken the floor of the rising trend channel in the medium long term, which indicates a weaker initial rising rate. The stock has support at kroner 377 and resistance at kroner 470. The stock is assessed as technically neutral for the medium long term.

Subscriptions

Investtech does technical analysis of all stocks for you. A subscription with Investtech gives you analyses and recommendations for all stocks, sorting opportunities and stock selection. You get access to Investtech’s unique research results and competence programme. We do everything we can so that you will make better investments. You select your own subscription level and period. Contact customer support by phone: 21 555 888 for personal assistance.

Investtech offers unique chart analyses that show trends, price patterns, support and resistance levels and RSI. A written interpretation is given for each chart, with a concrete conclusion. The analyses are available for subscribers only, and we offer three subscription levels. Select the subscription that suits your requirements:

INVESTOR contains long and medium long term analyses, Top50 and Today’s Case.

TRADER also includes short term analyses, sorting by trends and statistics, and the Morning Report.

PROFESSIONAL gives access to all Investtech’s analysis tools, including Trading Opportunities, Overall Analysis and Hausse indices.

For over 20 years our mathematicians and statisticians have developed computer systems that analyse market psychology. Investtech's analyses are independent of investments firms, banks and the stock companies, and make an important complementary addition to, or replacement for, fundamental analysis.

Book on technical analysis

Investtech’s book, Technical StockAnalsis – for lower risks and increased returns, is easy to read and a practical introduction to technical analysis.

Research

Investtech works on research into behavioural finance. Several research projects are supported by the Norwegian Research Council. The results are utilised in our analyses and tested with excellent results on real investments. Our research is based on principles of mathematical pattern recognition, statistical optimisation and behavioural finance.

Rectangle formations give good signals

Investtech’s proprietary algorithms identify rectangle formations in price patterns. Buy signals from such rectangle formations are considered robust and reliable, with a hit rate of close to 70 per cent.

Bakkafrost is the leading producer of top quality atlantic salmon from the Faroe Islands. Bakkafrost controls the entire value chain from production of own salmon feed to value added salmon products. In 2015 the company had a turnover of DKK 3.2 billion and employs 820 full-time equivalent employees.

Related stocks

Model Portfolio, Oslo børs

References

Investtech’s analyses give quick and simple access to a wide universe. Investtech is an important tool for private and professional investors.

Why use technical stock analysis?

Use technical analysis to:

pick winning stocks,

keep the stocks long enough, and

sell at the right time.

Technical analysis aims to predict future price movements. The prediction is made through understanding investors’ psychological changes and thereby predicting increasing and decreasing optimism and buy interest. The analysis method is used both on individual stocks and indices.

Through the use of good tools, technical analysis is an objective form of analysis that gives concrete suggestions for purchase or sales. The method is easy to use and does not require great understanding of each company and each stock traded.

Investtech’s research shows that this method used over time gives good statistical opportunities to beat the market.

What are possible pitfalls when using technical analysis?

There are two important factors to keep in mind: objectivity and long term perspective.

Objectivity and simplicity are absolutely necessary, which means that analyses and advice have to be specific and leave no room for interpretation. Technical analysis has historically been a big toolbox with a great number of indicators and models with a range of parameters. This gives the opportunity to always find almost perfect models for specific stocks or periods of time, but it will rarely work in practice. It is even worse if working without quantitative tools, i.e. by just looking at the charts, drawing trend lines and identifying support and resistance on your own. You will easily see what you want to see and what fits in with your subconscious understanding of the stock. This can easily lead you in the very wrong direction, and you may end up being ruled by your own emotional fluctuations, such as greed and fear of loss. These are the exact psychological fluctuations we will profit from by the correct and patient use of technical analysis.

A long term perspective is also key. A very important characteristic of technical analysis, of all stock analysis, is the high uncertainty. You will never be especially certain of a specific outcome. Aim to be right a little more often than wrong, or even better, to make a little more money every time you are right than what you lose every time you are wrong. Technical analysis helps you side with the more likely outcomes. If you are right 55 per cent of the time, be happy!

But of course it is the nature of the stock market that maybe 6 of the first 10 trades go wrong, or you lose compared to the market in the first year. It is easy to start doubting the methods.

A common pitfall is changing your strategy and not trusting the statistical results when failing to achieve immediate success. Obtain a solid foundation for the strategy you choose, preferably both statistical/quantitative and through psychological/financial explanations/theory and FOLLOW YOUR STRATEGY.

Is technical analysis enough or should it be supplemented by something?

Technical analysis itself is enough. Some even feel it’s a disadvantage to use fundamental analysis and paying attention to news streams and forums. It is easy to start doubting technical signals and quantitative recommendations. Technical analysis is based on the principle that all relevant information is expressed through the stock price movements. Profit is made from the lags and overreactions in the market.

Nevertheless, using fundamental analysis in addition to technical analysis may make you more confident about your investments. This may help you sleep at night. Ideally you want to buy stocks both because

1. they are fundamentally cheap and
2. investor demand is increasing.

Investtech recommends analysing insider trade quantitatively, where available, and taking it as fundamental analysis. Insiders buy stocks and put their own money into their own company when they feel the company is fundamentally cheap.

Who should use technical analysis and how do you get started?

We have years of thorough research and results from real investments in the market that demonstrate that disciplined use of technical analysis with Investtechs tools have given good long-term results.

Technical analysis is especially well suited for private investors. Smaller private investors can enter and exit a stock quickly and are thus well situated to profit from technical analysis. We recommend the following procedure when deciding to try technical analysis:

Try a free trial subscriptions with Investtech. Complete the competence program online and learn which indicators and signals have given the statistically best return.

Register for Investtech’s daily e-mail newsletter. It is free and contains a market commentary and a recommended stock.

Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer.
The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.

Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer.
The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.